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UK-based buyouts accounted for almost half of the value of all private equity deal activity in Europe in 2012, according to data provider Dealogic.

Deals in the UK represented 44% of the value of private equity buyouts in the year to December 21, compared to 27% in the whole of 2011, with 190 transactions worth a combined $23.6bn over the period. Germany ranked second with 80 deals worth $8.9bn, a 17% market share.

The UK and Germany were the only two large economies to see a rise in the value of buyouts.

The UK's share of European buyout activity has not been so strong since 2000, when the country accounted for 61% of the total value of European private equity deals.

Philip Sanderson, head of private equity at law firm Travers Smith, said that while 2012 had not been a strong year for UK M&A, the country had probably benefited from activity in countries such as Spain and Italy falling away. He added: “Maybe it is a sign that there is a little bit more stability in the UK economy and that being outside of the euro currency may mean it gets back on an even keel before many others.”

Spain’s market share fell from 5% in 2011 to 4% this year, while Italy’s dropped from 9% last year to 4% in the last 12 months. France’s market share also fell from 22.5% last year to 7% this year.

The total value and volume of European buyouts fell to 705 deals worth a combined $53.6bn, in the year to December 21, from 772 deals worth $65.7bn in 2011. It is the lowest level since 2009.